Electric Car Grant: EV sales soar as UK drivers turn to government discount
More than 140,000 motorists have benefited in its first year from a government scheme designed to reduce the cost of electric vehicles (EVs), the Department for Transport (DfT) has announced.
The Electric Car Grant, launched on July 16 last year with £2bn of funding, offers a discount of £1,500 or £3,750 on new EV purchases determined by sustainability criteria.
The DfT said the initiative addresses “one of the biggest barriers to motorists switching to electric – upfront cost”.
It comes as new data from online vehicle marketplace Autotrader shows new electric cars are now more affordable than similar petrol models.
Additionally, figures from the Association of Motor Manufacturers and Traders show a significant 35 per cent increase in registrations of new fully battery-electric cars in June compared to the same period last year.
Their market share rose to 30 percent from about 25 percent a year ago.
Decarbonization Minister Keir Mather said demand for electric vehicles “is stronger than ever and is only going in one direction”.
He continued: “We’ve made it easier and cheaper than ever to switch to electric, and with savings of up to £1,400 (annual) in running costs, there’s never been a better time to make the switch, especially in an environment of fluctuating global fuel prices.”
RAC head of policy Simon Williams praised the grant “for making such a positive difference to EV sales in its first year”.
He continued: “The high up-front cost of a new EV has long been the biggest barrier to wider adoption.
“With 58 models now eligible for the rebate, drivers have more choice than ever at varying price points.”
This comes after the government confirmed a new pay-per-kilometre scheme for electric vehicles will be introduced in April 2028.
Under the new system, drivers of fully electric cars will face a charge of 3p per mile, while owners of plug-in hybrid models will pay a reduced fee of 1.5p per mile.
Both figures fall short of the 6p per mile drivers of petrol and diesel vehicles currently pay through fuel duty.
The government states that the new eVED system will work by calculating an upfront fee based on estimated driver mileage. Drivers will have the option to spread this cost through monthly payments to reflect the current Vehicle Excise Duty (VED) structure.
At the end of each year, drivers will be asked to submit their actual mileage. This will be cross-referenced with the mileage reading taken at the time of the vehicle’s annual MOT or, for newer vehicles, around the second or third anniversary of their registration.
The outstanding balance will then be paid off, or drivers can choose to spread the cost over the next 12-month period.
